Seaspan Corporation (NYSE: SSW) has completed previously announced US $250 million investment from certain subsidiaries of Fairfax Financial Holdings Limited (TSX: FFH, FFH.U). The investment from Fairfax is comprised of 5.5% interest bearing debentures and Class A common share purchase warrants.
Seaspan has issued 38,461,539 warrants, each exercisable into one Class A common share in the capital of Seaspan and exercisable at US $6.50 per share. Each warrant will be exercisable within seven years.
Seaspan stock closed at US $7.20 on New York Stock Exchange (NYSE) on February 14, 2018.
If Fairfax were to exercise all the warrants, it would become second largest shareholder of Seaspan. R. Dennis Washington currently is Seaspan’s largest shareholder, controlling 49.2% of Seaspan’s outstanding common shares.
photo credit: Seaspan
News Release
Seaspan Announces Closing of $250 Million 5.50% Debenture and Warrant Investment with Fairfax Financial Holdings Limited
HONG KONG, China, Feb. 14, 2018 – Seaspan Corporation (NYSE: SSW) (“Seaspan” or the “Company”) announced today that it has closed the previously announced US$250 million investment from certain subsidiaries of Fairfax Financial Holdings Limited (collectively, “Fairfax”). The investment from Fairfax is comprised of 5.5% interest bearing debentures (the “Debentures”) and Class A Common Share purchase warrants (the “Warrants”). Seaspan intends to use the proceeds from the investment to fund future growth initiatives, debt repayment and for general corporate purposes.
About Seaspan
Seaspan provides many of the world’s major shipping lines with creative outsourcing alternatives to vessel ownership by offering long-term leases on large, modern containerships combined with industry leading ship management services. Seaspan’s operating and managed fleet consists of 112 containerships representing a total capacity of approximately 900,000 TEU, including 4 newbuilding containerships on order scheduled for delivery to Seaspan and third parties by mid-2018, and one second hand vessel scheduled for delivery during the month. Upon delivery of the second hand vessel, Seaspan’s operating fleet will be comprised of 92 vessels with an average age of approximately six years and average remaining lease period of approximately five years, on a TEU weighted basis.
Seaspan has the following securities listed on The New York Stock Exchange:
Symbol: Description:
SSW Class A common shares
SSW PR D Series D preferred shares
SSW PR E Series E preferred shares
SSW PR G Series G preferred shares
SSW PR H Series H preferred shares
SSWN 6.375% senior unsecured notes due 2019
SSWA 7.125% senior unsecured notes due 2027
For Investor Relations Inquiries:
Mr. David Spivak
Chief Financial Officer
Seaspan Corporation
Tel. 604-638-2580
Mr. Michael Sieffert Director, Corporate Finance Seaspan Corporation Tel. 778-328-6490
For Media Inquiries:
Mr. Leon Berman The IGB Group Tel. 212-477-8438
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